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Case Study: You are building 5 luxury cabins over five weeks as part of a tourist development. Although each one is quite different, they each have the same budget. The budget for each cabin is for $50,000 labour and $50,000 material. Your budget uses an estimated labour rate of $100/person-hr. Your plan is to perform an equal amount of labour and material in each week, and an equal amount of labour and material for each cabin. Material is delivered just-in-time, so there is no material unused on-site at the end of each week.
Now it is the end of week #3. You have spent $124,000 on labour and $100,000 on materials. An objective calculation shows you have completed 100% of the labour and material on cabins 1 and 2, 80% on cabin 3, and have made no progress on cabins 4 and 5.
Question: Assuming the rate of progress continues, and with no further information available, what is your most accurate calculation of the eventual final cost?
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